Even after passing the $700 billion rescue plan, the government is searching for more ways to instill confidence in America's banking system. The Treasury Department is now considering taking ownership stakes in several U.S. banks.
If the Treasury Department decided to buy the banks, they would infuse billions of dollars in the banks to build up reserves and motivate lending. A similar thing seemed to work in Sweden in the early 1990s, when the government let the weak ones die and they reinforced the stronger banks. What would this mean for consumers?